Oil could reach $120 if last month’s highs taken out

Daily Market Analysis Friday 02/17/12

KEY TERMS
OVB Outside Vertical Bar
VRCB Volatility Reduced Compression Bar
STT 1 Trend Based on a Range Violation
STT 2 Trend Based on a Close Violation
RBB Resistance Bollinger Band
SBB Support Bollinger Band

ENERGIES

CLH12:

  • STT 1 Trend is bullish. STT 2 Trend is bearish.
  • New highs made today on current move @ 102.69. Upside Target over 115% achieved.
    • March Crude was able to rebound from its earlier losses throughout the day as strong economic indicators propelled the market higher above the daily RBB and extending the move through the weekly objective of 102.44
    • If WTI is able to continue its rally and break last month’s active contract high of 103.74, it will generate a monthly VRCB-OVB combo and set up a long term move back towards our Projected Target @ 120.35.
  • Projected Daily Range: 1.78
  • Projected Weekly Range: 4.73
  • Projected Monthly Range: 10.15

NGJ12:

  • STT 1 Trend is bullish. STT 2 Trend is bearish.
  • Bullish KEY REVERSAL generated today.
    • Nat Gas continued its schizophrenic trading patter today on larger than expected storage withdrawals as the market is reaching its seasonal lows
    • Natural Gas may be able to rally to near $3.00 or slightly above but in doing so will only present a strong selling opportunity as extensive technical damage will be hard to overcome in the next few months out.
  • Projected Daily Range: .124
  • Projected Weekly Range: .430
  • Projected Monthly Range: .760

Parrish Hicks Capital Research is a trading technical analysis firm that specializes in WTI. The two founders, Jim Parrish and Kris Hicks, have a combined 38 years experience in the commodity business and in 2011 accurately called both $25 moves to the downside in May and July and the $25+ move to the upside in October. Their trading methodology confirms tops/bottoms, projected trading ranges and projected targets for those ranges. Although their expertise is focused on WTI, they also provide technical analysis on 16 commodity markets including the energies, metals, equity index, currencies, grains, meats and interest rates. You can reach them at Jim@ParrishHicks.com and Kris@ParrishHicks.com. www.ParrishHicks.com.

About the Author
Kris Hicks

KMH is a trading and technical analysis firm that specializes in commodity futures and commodity based ETF’s. Kris Hicks has worked for numerous years in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October in oil. He also called the all-time high day for gold on Sept. 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. He was also responsible for projecting the Q2 and Q4 low in the Euro FX to within 13 and 9 ticks, respectively. His trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. His expertise is focused on 16 commodities plus the comparable ETF markets. You can reach Kris at Kris@KMH-Capital.com or visit his website at www.KMH-Capital.com.

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